US $225 M Biovail Financing

On October 20, 1999, Biovail Corporation International completed a public offering of 5,000,000 common shares for gross proceeds of US$255 million. In the United States, the managing underwriters for the offering were Donaldson, Lufkin & Jenrette, Merrill Lynch & Co., Morgan Stanley Dean Witter, Banc of America Securities LLC, Punk, Ziegel & Company and DLJdirect Inc. In Canada, the underwriters were Merrill Lynch Canada Inc., RBC Dominion Securities Inc., Yorkton Securities Inc., CIBC World Markets Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., National Bank Financial Corp., ScotiaMcLeod Inc. and TD Securities Inc. The net proceeds were used to repay debt and for working capital and general corporate purposes. Biovail is an international integrated pharmaceutical company engaged in the formulation, clinical testing, registration and manufacture of drug products utilizing advanced drug delivery technologies.

At approximately the same time, Biovail also completed the acquisition of Fuisz Technologies Inc., an international company that is engaged in the development, manufacture and commercialization of a wide range of drug delivery systems. The acquisition of Fuisz was completed in a two-stage cash and share transaction that valued the equity of Fuisz at approximately US$154 million. The first stage of the transaction was a cash tender offer for 49% of the shares of Fuisz for an aggregate cash purchase price of approximately US$75.6 million. The second stage of the acquisition was a stock-for-stock merger pursuant to which approximately 1,500,000 shares of Biovail were issued to shareholders of Fuisz.

Canadian legal counsel for Biovail was provided by Jeffrey Blidner and Leslie Giller of Goodman and Carr in Toronto and Roger Andrus and Vincent Ricci of Cahill Gordon Reindell in New York. Brice Voran, Jason Lehner, and Nancy Hoi Bertrand of Shearman & Sterling in Toronto acted for the U.S. underwriters and Phillip Brown and Douglas Harris of Torys acted for the Canadian underwriters.